MIRA INFORM REPORT

 

 

Report No. :

335570

Report Date :

07.08.2015

 

IDENTIFICATION DETAILS

 

Name :

DUBAI DUTY FREE

 

 

Formerly Known As :

DUBAI DUTY FREE SHOPPING COMPLEX

 

 

Registered Office :

Dubai International Airport 2525 & 831 Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

20.12.1983

 

 

Legal Form :

Government Corporation

 

 

Line of Business :

Subject operates the Dubai International Airport duty free shopping complex, which comprises the following departments:

 

Fashion Shop                         

Engaged in the retail of ladies and gents readymade garments, specialising in Italian and French fashion items, leisure wear, ties and scarves.

 

Fine Leather Shop

Engaged in the retail of handbags, suitcases carry bags and suit carriers, plus wallets, key minders and purses belts and other  leather goods and accessories.

 

Perfume Shop             

This specialises in the retail of the top brand names of perfumes and cosmetics.

 

Toy & Book Shop                    

Retailers of books, magazines, toys and electronic games.

 

Gift Items Shop           

This department specialises in the retail of crystal and porcelain  items, small leather goods, scarves and ties, as well as brand name gold jewellery and diamonds.

 

Watch Shop

Engaged in the retail of watches, sunglasses and writing instruments.

 

Gold Jewellery Shop               

The gold jewellery shop has 16 counter units which are designed to complement the products and is engaged in the retail of a wide range of gold jewellery, including 18kt, 22kt and tola bars in 24kt gold, precious gems, pearls and a wide selection of costume jewellery.

 

Spirits & Tobacco Shop

Retailers of a wide range of spirits, wines and champagnes, as well as cigarettes, cigars and tobacco.

 

Food Shop      

Retailers of delicatessen products, fine foods, confectionery, health food and baby care products.

 

Electronics Shop

Engaged in the retail of VCR's, televisions, radio-cassettes, car radios, mini-discs, electronic keyboards, computers, CD players, DVD's, household appliances, personal appliances, telephones and fax machines.

 

 

No. of Employee :

6,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

UNITED ARAB EMIRATES ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

 


SUMMARY

 

Company Name                                    : DUBAI DUTY FREE

Also Known As                                     : DUBAI DUTY FREE SHOPPING COMPLEX

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Government Corporation

Registration Date                                  : 20th December 1983

Total Workforce                                    : 6,000

Activities                                               : Operators of a duty free shopping complex

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 


 

COMPANY NAME

 

DUBAI DUTY FREE

 

 

ALSO KNOWN AS

 

DUBAI DUTY FREE SHOPPING COMPLEX

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Dubai International Airport

 

PO Box            : 2525 & 831

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2224222 / 2066444 / 2062453 / 2162453 / 6019518 / 6019523

Facsimile          : (971-4) 2246458 / 2244036 / 2244164

Mobile              : (971-50) 4563614 / 4563613

Email                : customerservice@ddf.ae

 

Premises

 

Subject operates from a large suite of offices and showroom that are rented and located in the Dubai International Airport.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       George Horan                                                                                   President

 

·       Colm McLoughlin                                                                              Executive Vice President

 

·       Ms Sinead El Sibai                                                                           Marketing Manager

 

·       Bernard Creed                                                                                  Finance Manager

 

·       Ms Saba Tahir                                                                                  Purchasing Manager

 

·       Ramesh Cidambi                                                                              IT Manager

 

·       Salah Tahlak                                                                                     Communications Manager

 

·       Sean Staunton                                                                                  Operations Manager

 

·       Nic Bruwer                                                                                        Human Resources Manager

 

·       Zayed Al Shebli                                                                                Security Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20th December 1983

 

Legal Form                  : Government Corporation

 

Name of Shareholder (s)                                              Percentage

 

·       Government of the Emirate of Dubai                             100%

 

Local sources report that subject is responsible to the Dubai Civil Aviation Authority, which in turn is a department within the government of Dubai.

 

 

OPERATIONS

 

Activities: Subject operates the Dubai International Airport duty free shopping complex, which comprises the

     following departments:

 

 

  • Fashion Shop                          Engaged in the retail of ladies and gents readymade garments,

specialising in Italian and French fashion items, leisure wear, ties and scarves.

 

  • Fine Leather Shop                    Engaged in the retail of handbags, suitcases carry bags and suit

carriers, plus wallets, key minders and purses belts and other

leather goods and accessories.

 

  • Perfume Shop                          This specialises in the retail of the top brand names of perfumes

and cosmetics.

 

  • Toy & Book Shop                     Retailers of books, magazines, toys and electronic games.

 

  • Gift Items Shop                        This department specialises in the retail of crystal and porcelain

items, small leather goods, scarves and ties, as well as brand name gold jewellery and diamonds.

 

  • Watch Shop                             Engaged in the retail of watches, sunglasses and writing

instruments.

 

  • Gold Jewellery Shop                The gold jewellery shop has 16 counter units which are designed

to complement the products and is engaged in the retail of a wide range of gold jewellery, including 18kt, 22kt and tola bars in 24kt gold, precious gems, pearls and a wide selection of costume jewellery.

 

  • Spirits & Tobacco Shop           Retailers of a wide range of spirits, wines and champagnes, as

well as cigarettes, cigars and tobacco.

 

  • Food Shop                               Retailers of delicatessen products, fine foods, confectionery,

health food and baby care products.

 

  • Electronics Shop                     Engaged in the retail of VCR's, televisions, radio-cassettes, car

radios, mini-discs, electronic keyboards, computers, CD players, DVD's, household appliances, personal appliances, telephones and fax machines.

 

With the opening of Concourse A in January 2013 which is dedicated to Emirates Airline’s A380 fleet, Dubai Duty Free now operates 26,000 square metres of retail space across Terminals 1, 2 and 3. The opening of Concourse A will be followed within 3 to 4 years by the opening of Concourse D.

 

Meanwhile, Dubai Duty Free’s Leisure Division which operates the popular Irish Village and the Century Village, opened its first hotel - the Jumeirah Creekside Hotel. The 292-room five-star property is managed by Dubai-based Jumeirah Group. 

 

Dubai Duty Free also inaugurated its first border shop located next to the Customs and Immigration offices at the Hatta-Oman border in July last year. The retail unit covers some 42 square metres and provides a convenient stop off point 24/7 for travellers crossing to and from Dubai.

 

Dubai Duty Free's subsidiary businesses include The Irish Village, The Century Village and the Dubai Duty Free Tennis Stadium; home to the Dubai Duty Free Tennis Championships. Located on the same site in

Garhoud, the recently opened Jumeirah Creekside Hotel, which encompasses the Aviation Club, is owned

and developed by Dubai Duty Free and is managed by the Jumeirah Group. The hotel, which opened in July

2012 is already proving to be a popular business and leisure property.  In close proximity to Dubai’s

international airport it is a five star hotel of international standards.  There are 292 spacious rooms and suites

offering guests a refreshing interpretation of luxury and an authentic experience of Dubai.  The Irish Village

Bar and Restaurant in Dubai is also owned and run by Dubai Duty Free. A winner of several industry awards and named by Newsweek International as one of the ‘top ten meeting places in the world’, it continues to

 attract visitors from all over the world.   

Dubai Duty Free is currently operating over 26,000 square metres of retail space at Dubai International Airport (DIA), the retail footprint will expand by a further 7,000 square metres with the opening of Concourse D in 2015. This new concourse will cover some 65,000 square metres and will be the home to the 100 airlines that currently operate from DIA’s Terminal 1, Concourse C.

Meanwhile, the Dubai Duty Free operation at Al Maktoum International Airport at Dubai World Central continues to do well and covers 2,500 square metres. In the long term, the airport has capacity for over 220 million passengers and ultimately, the retail operation will cover some 64,000 square metres. 

Import Countries : The United Kingdom, France, Spain, Italy, Germany, the Netherlands and Switzerland.

 

Brand Names : LLADRO, BACCARAT, SWAROWSKI, CHRISTOFLE, WATERFORD, WEDGEWOOD and ROYAL

DOULTON

 

Operating Trend: Steady

 

Subject has a workforce of approximately 6,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/13:               Year Ending 31/12/14:

 

Total Sales                                UAE Dh 6,999,000,000               UAE Dh 7,500,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Arab Bank Plc

Ittihad Street

PO Box: 11364

Dubai

Tel: (971-4) 2228845

Fax: (971-4) 2285974 / 2940847

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.76

UK Pound

1

Rs.99.60

Euro

1

Rs.69.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.